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NBFI and Modaraba sector contributed Rs 200 billion, ignored in SME concessional schemes: Raheel Q Ahmad

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Zubair Yaqoob
Zubair Yaqoob
The author has diversified experience in business reporting. He is Chief content editor at wnobserver.com He can be reached at: [email protected]

Chairman NBFI & Modaraba association Raheel Qamar Ahmad has said that the Non-Banking Financial Sector & Modarabas Sector is an active financier of SMEs and it has contributed over Rs 200 billion during the last ten years in the economy but the sector is ignored in SME concessional schemes.

At the 9th yearbook launch and best performance award ceremony, Raheel Qamar Ahmad said the total number of investors in PSX is 231,793 whereas the NBFI & Modaraba sector have 86,473 investors which comes to 37% of it. The sector has paid to their shareholders Rs 10 billion during the last ten years.

Raheel said our focus is on the creation of employment, financial inclusion, women empowerment. SME financing.  “We have repeatedly raised our voice at different forums to include the NBFI & Modaraba Sector in all the concessional schemes introduced by State Bank of Pakistan for SMEs so that the sector may play its due role in the growth of the SME sector”. he said

Earlier, Khalid Mirza, Chairman, Policy Board, Securities & Exchange Commission of Pakistan on the occasion of unveiling the Year Book – 2018 of NBFI & Modaraba Association of Pakistan said that the Non-Banking Financial Sector & Modaraba companies should oppose and take head on the Sales Taxes imposed on the sector considering them as services sector by the Government of Sindh in its Budget, this sector is only providing financial support rather than services as assumed by the Government.

Whereas the Regulator are not observing their true power as laid in 1913 Act, this was stated by the Chief Guest Khalid Mirza further added that NBFI & Modaraba help attain the objective of macroeconomic policies of creating more jobs in the country by promoting SMEs.

He said that the Small and Medium Enterprises requirement and their volume the revenue of PKR 94 Billion available by NBFI & Modaraba Association will not cater SME need. We have to increase the available revenue to meet the requirement drastically.

On behalf of Chairman SECP Farrukh H. Sabzwari, Mussarat Jabeen, Executive Director, SECP read the message and said that the Leasing companies and modarabas played significant role in the Non-Banking Financial Sector and believe that by developing a strong NBF sector we will not only promote savings by offering different asset classes to the investors but also provide alternative fund raising opportunities to the participants of the financial system.

Adding that total assets of the leasing sector stand at Rs 10 billion, whereas the Modaraba sector is Rs 53 billion. This means that the total size of the leasing and Modaraba sector in Pakistan is approximately 0.18% of GDP, which is dismal, message stated.

At the event, Orix leasing Pakistan Limited declared the best performer for the year ended June 2018. while Allied Rental Modaraba stood second.

Whereas, ORIX Modaraba and First Habib Modaraba acknowledged as joint winners of the third position.

Read also: SBP launches three shariah compliance refinance schemes for SME growth

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